By Natsuko Waki
LONDON, July 11 (Reuters) - World stocks hit one-week lows and the euro slid across the board as intensifying concerns that Italy could be the next victim of the euro zone debt crisis prompted an emergency meeting of top European officials.
Italian government bonds tumbled and the yield premium investors demand to hold Italian debt over German bunds widened to a fresh euro-era high as focus shifted to a country which has the euro zone's highest sovereign debt ratio relative to its economy after Greece.
A weaker-than-expected U.S. jobs report on Friday and data showing China's import growth fell to its slowest pace in 20 months also encouraged investors to sell their risky assets.
"Investor sentiment is on the back foot this morning. Nobody knows where this is going to stop and when the next domino will fall," said Jeremy Batstone-Carr, strategist at Charles Stanley.
The MSCI world equity index fell 0.6 percent to a one-week low.
European stocks fell half a percent while emerging stocks lost 1 percent.
The Euro STOXX 50 volatility index rose 7.9 percent, its highest in nearly two weeks.
U.S. crude oil
Bund futures
Herman Van Rompuy, the president of the European Council, will meet European Central Bank President Jean-Claude Trichet and Jean-Claude Juncker, the chairman of the Eurogroup, at around midday (1000 GMT), ahead of a meeting of the 17 euro zone finance ministers later.
"Concerns over Italy show contagion risks in the euro zone are increasing. Investor confidence remains low and will limit demand for euro denominated assets," said Manuel Oliveri, currency analyst at UBS in Zurich.
The dollar against a basket of major currencies. The euro fell half a percent to $1.4140 while it neared a record low against the Swiss franc .
A Financial Times report saying some EU leaders were considering allowing a selective default by Athens to put its debt on a more sustainable footing also dented the single currency, traders said.
Data last Friday showed U.S. jobs growth nearly halted in June, adding to concerns about the health of the world's biggest economy.
The dismal jobs report was also seen complicating efforts to avert a looming U.S. debt default. President Barack Obama and congressional leaders of both parties were in high-stakes talks to break the impasse over raising the debt ceiling. (Editing by Catherine Evans)